Madagascar Oil works to quash swirling rumours

Madagascar Oil's board was working to quash swirling rumours about its activities on Tuesday, as it made efforts to release funds and secure a strategic partner.

At 1615 GMT, the AIM-listed firm's shares had jumped 18.52%, to 4p. The company said there had also been speculation on the bulletin boards with regard to its partner process.

The company had previously announced the process to identify potential strategic partners to work with it on the development and funding of the Tsimiroro field.

"The company can confirm that the partner process is continuing, but it has yet to yield any actionable proposals", Madagascar Oil's board said in a statement.

"There are a number of discussions ongoing, but it will take time to confirm whether any of these discussions can be converted into an executable deal, and there is no guarantee that any of them will be consummated this quarter - as previously announced - if at all", it continued.

Madagascar Oil also confirmed it was in discussions with its lenders, which provided the bridge financing facility as announced on 29 September 2015, with regard to the release of all, some or none of the second tranche of $8m (£5.6m) from that facility.

"There can be no certainty as to the outcome of these discussions", the board concluded.